Security guards and any independent contractor that provides security services are frequently required to work under dangerous conditions. They may have to perform services that put the personal safety of themselves and others at risk. If you work in the security business, you need to have security guard insurance to protect yourself and your business against the potentially devastating financial losses resulting from an accident or injury that happens on your watch.
Types of Insurance Coverage for Security Services Professionals and Their Businesses
If you are in the security guard business, whether as an employee, freelancer, or owner of a security services firm, you need to have insurance that will cover you if someone is injured or property is damaged while under your responsibility.
Security services include security monitoring, providing security for executive personnel, or even working as a “bouncer”. Some security services operate with firearms, while others do not. That variety means that security guard insurance should not be regarded as “one-size-fits-all”.
Security guard insurance can consist of various types of policies, as described below. Importantly, your insurance policies will not cover it. Even if they do, the limits of your coverage on your policies likely will not be adequate.
If you are uninsured or inadequately covered, you can be held personally liable for the amounts not covered by insurance. You must have insurance designed to cover the security services you provide.
The types of coverage security services professionals and their businesses typically need include:
General Liability Insurance
Most states require general liability insurance as a condition to getting a business license. General liability is necessary whether your state requires it or not because it provides coverage for a liability that can arise while performing your security services.
Workers Compensation Insurance
If you have a security services business with employees, your state’s laws will require that you have workers compensation insurance. Your state’s laws will set forth the criteria that applies to trigger the requirement and the parameters for minimum coverage and other conditions. Workers comp insurance protects employees who are injured on the job. It covers their medical expenses and provides coverage for additional losses such as lost wages and other benefits.
Property insurance provides coverage for damage to your customers’ property that occurs while you are guarding it. This insurance protects the property regardless of whether you cannot properly secure the site or are simply unable to prevent the incident that causes the property damage. It can cover damage to buildings and personal property, loss of business income, tenant glass & sign damage, and other types of property damage.
Business Automobile Insurance
Business automobile insurance for security professionals is designed to cover the vehicles you use in your security business. The types of vehicles you use may include your car (if you are a freelancer), or a company-owned or an employer’s vehicle, golf cart, motorcycle, boats, or other type of motorized vehicle. Do not make the mistake of assuming your personal automobile insurance covers damage to your vehicle while you are providing security services. If you work for a security company, your employer should have insurance on the vehicle it provides for your use. Also, any automobile insurance policy you are relying on for coverage should cover third-party drivers and provide both collision and uninsured motorist protection.
Professional Liability Insurance
Professional liability insurance covers you if an accident or damage occurs that is due to an error of your professional judgment. These situations can arise when mistaken advice was given, or when you or one of your employees was negligent in performing security service duties, or similar erroneous decision-making resulted in an injury or property damage.
Security guards perform inherently dangerous services, especially if the security guards carry firearms. They need to consider whether they need life insurance to protect their surviving family members in the event of a tragedy that takes the life of a security guard.
Inland marine coverage can cover your electronic data processing equipment and mobile property if it is damaged.
Third-Party Employee Dishonesty
If you have contractors or employees who transact business with your customers, you may want to insure against the risk that they may commit a dishonest act against your customers.
If you are a security business owner, you can save some of the premium costs by acquiring a combination of several policies for the most complete coverage. You will be able to get multiple policies from a single carrier.
Be sure to shop around because prices can vary widely. Premium costs will depend on a range of factors such as the number of employees you have, the number of vehicles you operate, and whether or not your guards are armed.
Contact the Security Guard Insurance Experts at Southern States Insurance
For help with security guard insurance coverage for your business, get in touch with one of the experts at Southern States Insurance. They offer a wide variety of insurance policies that can be tailored to your security business needs, regardless of the size of your company.